Intelligent Investor

Fleetwood downgraded

The situation is getting better but the improvements are now reflected in Fleetwood's share price.
By · 18 Jul 2016
By ·
18 Jul 2016 · 2 min read
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Recommendation

Fleetwood Limited - FWD
Buy
below 1.80
Hold
up to 3.50
Sell
above 3.50
Buy Hold Sell Meter
HOLD at $2.02
Current price
$1.48 at 16:40 (24 April 2024)

Price at review
$2.02 at (18 July 2016)

Max Portfolio Weighting
4%

Business Risk
Medium-High

Share Price Risk
Medium-High
All Prices are in AUD ($)

Fleetwood's share price has been on a tear; it has almost doubled since March and is up more than 40% in the past 12 months. As we highlighted in Fleetwood: stumbling but standing and Fleetwood starts to turn, the business is improving, with new RV launches and a well-performing manufactured accommodation business.

Fleetwood generates high cash flow, has fixed its balance sheet and is now poised to generate better returns. Although things appear rosier, those conditions are reflected in a higher share price which has stormed through our recommendation guide. We are downgrading Fleetwood to HOLD

Note: The Intelligent Investor Growth Portfolio owns shares in Fleetwood. You can find out about investing directly in Intelligent Investor and InvestSMART portfolios by clicking here.

Disclosure: The author owns share in Fleetwood.

 

IMPORTANT: Intelligent Investor is published by InvestSMART Financial Services Pty Limited AFSL 226435 (Licensee). Information is general financial product advice. You should consider your own personal objectives, financial situation and needs before making any investment decision and review the Product Disclosure Statement. InvestSMART Funds Management Limited (RE) is the responsible entity of various managed investment schemes and is a related party of the Licensee. The RE may own, buy or sell the shares suggested in this article simultaneous with, or following the release of this article. Any such transaction could affect the price of the share. All indications of performance returns are historical and cannot be relied upon as an indicator for future performance.
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